Interim Parliamentary Budget Officer Jason Jacques.Adrian Wyld/The Canadian Press
The Organization for Economic Co-operation and Development’s first ever external review of Canada’s Parliamentary Budget Office praises the organization’s work and ranks it as the best in class internationally.
The report was released just ahead of an expected government appointment of a new person to lead the high-profile office.
Jason Jacques, the interim Parliamentary Budget Officer, was appointed in September to a six-month term that expires Monday. Mr. Jacques, who was a senior PBO official prior to his appointment, had asked the OECD last year to perform the independent review.
The office was created in 2006 under then prime minister Stephen Harper and its role and powers have evolved over time.
The PBO frequently publishes reports on federal spending trends and independently assesses the government’s cost estimates for major projects and programs.
“The Canadian PBO has established itself as a cornerstone of fiscal transparency and parliamentary accountability,” concludes the OECD report, which was released this week. “Today, the PBO is widely recognized as credible and influential, with outputs that shape parliamentary deliberations and inform public debate. Canada’s position at the top of the OECD Fiscal Advocacy Index underscores the strong impact of its work in fostering informed fiscal discourse.”
Pierre Cuguen, a spokesperson for the Privy Council Office, said in an e-mailed statement Wednesday that the government is reviewing the OECD report and related recommendations. He also said a selection process is under way to identify the next permanent head and “information regarding the appointment of a PBO will be made available in due course.”
The PBO has an annual budget of about $8.5-million and about 38 employees. It is independent from government and reports to Parliament.
The new head of the PBO will need to hit the ground running.
Later this week, the federal government will be tabling a key financial document called the main estimates that lays out base funding plans for all departments. That will be followed by more detailed departmental spending plans. These documents are expected to provide additional details related to the spending reductions announced in the Nov. 4 federal budget.
Federal departments refusing to provide details on spending cuts, PBO says
Finance Minister François-Philippe Champagne pledged in that budget to find $60-billion in internal savings over five years.
Under the Parliament of Canada Act, the government can appoint a head of the PBO to a seven-year term after consulting with opposition party leaders in the House of Commons and senators with leadership roles.
That person can be reappointed to one more seven-year term.
The government did not announce a permanent replacement for former parliamentary budget officer Yves Giroux when his first seven-year term expired last year.
Shortly after being named interim leader, Mr. Jacques attracted attention for using strong language to describe the government’s fiscal position, including “stupefying” and “shocking.” At the time, he described the trend line for the federal debt as unsustainable.
He later toned down his language in media interviews and committee appearances and expressed regret for his choice of words. The PBO released a report in December, following the budget, that concluded federal finances are sustainable over the long term.
Federal budget’s fiscal targets unlikely to be met, interim PBO says
Earlier this month, the PBO published its first “communications framework.” The policy says the office’s communications “must be properly understood, interpreted correctly and cited as a neutral source,” without ever compromising independence, analytic rigour or credibility.
Establishing such a policy was one of the OECD’s recommendations for change. It also said the office should provide media training to other members so that the attention is not focused solely on the leader.
The OECD report listed the controversy over Mr. Jacques’s language as a communication lesson. It was mentioned alongside an example from 2024, when the PBO under Mr. Giroux apologized for not being more visible in communicating that the office had revised earlier reports on the consumer impact of industrial carbon pricing.
“Strengthening protocols on how to present neutral messaging that accurately reflects analytical findings, and how to address missteps transparently and proportionately, would help ensure that the PBO’s communications remain clear and resilient in a fast‑moving parliamentary and media environment,” the report said.
In its recommendations for change, the OECD said the legislation governing the PBO should be updated to remove the possibility of reappointment.
It said this possibility could create incentives for an incumbent head to temper criticism or avoid contentious analysis in order to secure a second term. It also warned that relying on interim appointments puts at risk the PBO’s independence and stability.
The OECD also says the PBO should have stronger legal power to access financial information from federal departments.
Mr. Jacques, who has told MPs that he would be open to being the next officer, sharply criticized the government in September for not having a permanent officer in place when Mr. Giroux’s term expired. He said the requirements for naming an interim officer are not as stringent as what is required to select a permanent replacement.